Selling cars and trucks in California can be exciting for a variety of reasons!
Here are some of the best benefits I’ve heard over the years of flipping cars in California as a used auto dealer:
- Profit margins that reward dealers that have invested in their process.
- Great potential exit strategy due to being a business to sell once the model is built and the concept is proven.
- Formal education is not needed so you don’t need college to make money flipping cars in California.
- Car dealers create relationships that can be parlayed into other endeavors.
- Being a pillar of the community also has its importance.
What are the Types of Used Car Dealers in California?
Used Retail Auto Dealers are the most popular to the public. These are the auto dealers that you see on the corner. Whether small Mom and Pop shops or larger dealerships, these are not franchised dealerships.
How can you tell a franchised auto dealership or a new car dealer? It has a manufacturer’s name in the title, like Nissan of Fresno or Toyota of Clovis. The retail dealer license is a natural magnet to people flock that want to flip cars in California since they deal with the public.
Auto Brokers may eventually go away in California but it they still exist in as of late 2018. Auto brokers don’t sell cars directly to the public and they don’t buy inventory like other types of auto dealers. California Auto Brokers introduce a buyer to a seller and get paid by one of those parties, never both.
Wholesale Car Dealers are the last classification in California. These dealers cannot sell to the public, they can only flip cars to other licensed dealers. Wholesalers have less overhead in general and usually make their money on volume.
Most of the advertisements you see on Youtube that advertise how to sell cars without a lot, are describing a wholesale operation. You can technically wholesale cars to other car dealers out of your home.
Flipping Cars in California without a California DMV Dealer License!
As of October of 2018, you are able to sell up to 5 vehicles per year as a private party. That means no licenses needed, dealer education, sales taxes paid, etc if you only want to sell 5 cars per year.
This is awesome for most people that just want to keep their full-time job and sell a flip a cars on the side. And then there are those bastard curbstoners that are not satisfied with that 5 car maximum. They sell more than 5 cars each year in hopes of never getting caught by the California DMV.
How to get a California Used Car Dealer License?
Depending on what type of dealer license you want, the requirements vary a bit. Definitely get your Livescans (your background check) done 1st since that step takes the longest.
I created the DMV Dealer License infographic earlier this year to help some of my dealers get a better picture of the steps that are involved in getting licensed in 2018. I’d like to share it with you in hopes that it will help you through the process since it can be a bit overwhelming!
Another really time-consuming part of the process is getting the Articles of a Corporation or LLC back from the Secretary of State. Keep in mind that you don’t have to get a Fictitious Name Statement issued by your County if you are going to get an LLC or Corporation filed.
The California Used Car Dealer Checklist!
Your Car Dealer Bond is not only literally the name of my company, it’s part of your process to getting a Used Auto Dealer License in 2018 if you want to flip cars in California.
Retail car dealers and auto brokers have to get a $50K bond in California. There’s a clause in the California DMV code that allows wholesale-only dealers to get a $10K bond instead of the $50K bond if they are going to sell less than 25 cars/trucks per year.
Your Car Dealer Bond (YCDB) is probably best known for helping good folks just like you obtain wholesale rates on retail auto dealer bonds. But in 2018, YCDB can also help you with completing your DMV application to get your license finalized.
Most people have some questions along the way about the California DMV Dealer License test but have no fear, we can help. You need to get 28 correct out of 40 on that test so I know you can do it. Having said that, please let us know if we can help in any way.
Call 866-357-4405 for a local, family-owned insurance agency that is dedicated to providing the best surety bond services in California!
California Dealer Education Services!
If you are just recently licensed, you are still getting licensed, or you have hit a plateau in your growth, I have an amazing video series that is absolutely free. No shit! I’m not trying to sell you anything at all here, just trying to add a bit more value to see if I can earn your business in other ways.
I don’t want a free ride, just a fair chance to earn your business! If you already have a dealer bond, I also have a media team that will blow your mind!
As of October 16, 2018, The YCDB Media Team still has the capacity to take on 10 more clients this year for the following professional, low-cost services:
website development or audit
freelance writing for your website or press releases!
DO YOU INVEST LOCAL? YOUR CAR DEALER BOND IS A CALIFORNIA COMPANY!
Again, if you want flipping cars in California, we would be honored to help in any way possible! From dealer surety bonds to quality graphic design, the YCDB Team is helping retailers, wholesalers, and auto brokers at record numbers. You should be next!